What Makes Life Insurance So Important

It should not be hard to justify the expense of life insurance. Paying premiums doesn’t do much of anything for you in the present, but knowing that money will go to your loved ones, makes having a good life insurance policy worth every penny.

When you put money into a life insurance policy, you’re paying to secure the future of your family. That money will go a long way towards shielding them from the cost of funeral expenses or a loss of income. It’ll make sure your death doesn’t have a negative financial impact on the people that you love.

It doesn’t take much for someone to get in the hole. Without a life insurance policy, your family could drown in debt. Even a small policy can do a lot to help them. You want to make sure they’ll be okay even when you can no longer be there for them.

To make sure you get the most out of your life insurance, take the time to compare different policies. You may want to read up on what’s available and see what’s best for you. For example, if you’d like to be able to withdraw some of that money before your death, you should get a whole life policy. They cost more money, but the benefits can be worth it. If you want something more affordable, a term policy may be best. And buy early. Life insurance over the age of 50 is going to cost more than if you are in your 30′s.

It’s also a good idea to figure out how much money your family will need in the case of your death. Calculate funeral expenses, and also calculate how much income your household will be losing. You’ll want them shielded for at least a few months. That will ensure they have the time to keep their finances in order.

Life insurance is worth paying for. Talk to an agent and have them recommend a policy for you.

Why You Need Disability Insurance

When preparing for the future and worrying about retirement and other issues, many forget about enjoying a regular income in case of a serious problem. In fact, when working hard, many forget that they may, at any time, lose their paycheck due to an injury or illness. While some people have adequate savings, most people would have a hard time enjoying a high standard of living without replacing their check. With this in mind, here are four reasons why you need disability insurance, also sometimes referred to as income protection insurance.

Inexpensive: For starters, a person who is in good health can get a low price for disability insurance. For just a few dollars a month, one can avoid a catastrophe should they suffer an injury or debilitating sickness. Without a doubt, a person should not skimp on this insurance as it will leave one without money. In fact, this insurance is probably cheaper than other insurance policies that people routinely buy such as home, auto and life insurance.

No government or employer: In the United States, most people who suffer an injury are, unfortunately, on their own. While the local and state government may offer some funds, it is not enough to survive on or pay the bills. Furthermore, most companies, in a bid to save cash, do not offer disability insurance to its employees. For this reason, a person should take matters into his or her own hands and get the needed coverage.

Standard of living: Some people will have enough money in the bank or can work part-time to get some income to cover bills. However, to enjoy the same standard of living as one previously enjoyed, it is crucial to have protection in the form of disability coverage. Without this, one can probably still get by, but they will not enjoy a decent standard of living. This is especially true for people with children who are still in the house as it is difficult to feed a family without a reliable income.

Make up the difference: Finally, while some people will get something from their employer or the state, it usually not enough. With disability insurance, a person can get a reliable check that is larger than he or she gets from other sources. This is an often overlooked benefit as so many people assume they are covered through their employer or the state.

A prudent person with a family or other obligations must think a little more deeply when contemplating his other financial future. While not fun to think about or discuss, it is wise to prepare for the worst and anticipate problems in the future. When doing so and getting disability insurance, a working age individual will not fall into poverty after getting a disability.

Life Insurance is Available for Everyone

Getting a life insurance policy is not out of the question even for those who have long considered themselves uninsurable due to pre-existing medical conditions. There are numerous options available for almost anyone regardless of past medical history or present conditions requiring medical care. Insurance companies are willing to insure applicants based on individual assessments and try to look at the whole picture and not just the condition. Most insurance companies have their own underwriting guidelines. Applicants are encouraged to shop wisely for insurance coverage before deciding on one.

It is true that having a pre-existing condition puts an applicant in a high-risk group for most insurers and many may be reluctant to offer coverage. Many people with medical problems assume they are uninsurable and as a result do not even apply. What these individuals need to understand is that just having a medical condition does not mean that they cannot secure a life insurance policy to protect their family. Insurers examine all the facts surrounding this condition before deciding whether to accept or decline an application. The way a person chooses to control the condition weighs heavily in the decision-making process. A good example today is there are a lot of life insurance options for diabetics who are not overweight and follow a strict diet. They can often be eligible to receive life insurance at a good rate.
Those who wish to obtain coverage with a pre-existing condition have a better chance if they follow certain critical steps. Experienced insurance agents can help by finding a prospective insurer that is willing to review documentation presented by those with medical conditions. Writing a comprehensive health summary that details and underscores the positive aspects of an individual’s overall health is very beneficial for a high-risk applicant. It is also important to disclose all the pertinent facts related to the condition. Applicants should submit applications to several insurers and then review their decisions before choosing the right one.It is important to understand that there are some life insurance policies that do not require a medical examination and do offer guaranteed acceptance. Temporary and permanent coverage does require the applicant to complete a medical questionnaire and may only offer a graded benefit. Some other no-medical-exam policies may only include coverage for funeral expenses and limited financial support for loved ones. Even healthy people, who do not want to take the time to apply for life insurance that requires a medical exam, sometimes choose to purchase this plan. Life insurance is a good investment that provides security for loved ones and offers peace of mind for the insured.

The Importance of an Estate Plan

Some people believe that only wealthy individuals need estate planning. However, this is partially true. Estate planning involves developing a good plan for what happens in case you die or become mentally disabled. And these are things that may happen to everyone. Therefore, everyone needs these documents to put their financial and family affairs in order. There are a many reasons why people consider meeting with their estate planning attorneys to create an estate plan. This article highlights the importance of having an estate plan.

Avoid Probate

The major reason why most people opt to create this plan is to avoid probate. Although many people have never encountered probate, they just know it’s not a good thing and should be avoided at all costs. This fear can be attributed to the horror stories about probate covered on local and international media or narrated by family, friends, neighbors or business associates.

Reduce Estate Taxes

The payment of state estate taxes or inheritance taxes can lead to the substantial loss of an estate. This factor has greatly motivated many people to have an estate plan. Through basic planning, couples can significantly reduce or even get rid of such taxes altogether by making ABC Trusts or AB Trusts part of their revocable living trusts or wills. Moreover, individuals and couples can use many estate planning techniques to make the inheritance or estate tax less burdensome or go away altogether.

Avoid a Mess

Many people realize the importance of estate planning after seeing a friend, neighbor or colleague experience a substantial loss of money and time due to their love ones’ failure to have an estate plan. This plan offers you a chance to choose someone who will take care of your property in case you become mentally disabled or die as well as decide who would get what and when and how they would get it once you’re gone. With such an arrangement, you will prevent your family from unnecessary fights and expensive court proceedings over your property.

Protect Beneficiaries

When it comes to making a plan to protect your beneficiaries, you should do it for two main reasons; to protect minor beneficiaries, and protect adult beneficiaries from wrong decisions, outside influences, divorcing spouses and creditor problems. In case the beneficiary is still a minor, you should appoint a conservator or guardian to oversee the minor’s finances and needs till he/she becomes an adult. If the beneficiary is an adult with a bad money management record or who has an overbearing partner that may squander the inheritance, then you can make a plan that would shield the beneficiary from making bad decisions or from external influence.

Protect assets from creditors

Asset protection planning should be an important part of estate planning. As long as you suspect that your assets can attract lawsuits, particularly from creditors, you need to develop such a plan to protect your property. This would be both beneficial to you when still alive and your beneficiaries once you are gone. You may also provide asset protection through AB/ABC Trusts for your spouse and through lifetime trusts for your other beneficiaries.